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A company with excess capacity must decide between scropping of reworking units that do not pass inspection. The coenpany has 16.000 defective units that cost

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A company with excess capacity must decide between scropping of reworking units that do not pass inspection. The coenpany has 16.000 defective units that cost $6.00 per unit to manuacture. The unts can be a) sold as is for $280 each, or b) teworked for $4.70. each and then sofd for the full price of \$8.80 each. What is the incremental income from selling the units as serap and reworking and selling the units? 5 hould the company sedi the unitis as scmap or rework them? (Enter costs and losses 05 negotive volues.)

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